The most efficient way to accomplish closing entries is to
A) credit the income summary account for each revenue account balance.
B) debit the income summary account for each expense account balance.
C) credit the owner's drawings balance directly to the income summary account.
D) credit the income summary account for total revenues and debit the income summary account for total expenses.

Question

Quizplus · Accepted Answer

The most efficient way to accomplish closing entries is to credit the income summary account for total revenues and debit the income summary account for total expenses. This consolidates all revenue and expense accounts into one temporary account, which can then be closed out to retained earnings. This method also simplifies the closing process by minimizing the number of entries required.

The Most Efficient Way to Accomplish Closing Entries Is to